Nutreco expects a net profit increase of more than 50% – Fishupdate.com

Nutreco expects a net profit increase of more than 50% Published:  20 January, 2006

NUTRECO Holding N.V. has said it expects a net profit increase of more than 50% particularly as a result of an excellent fourth quarter for Marine Harvest N.V., in which Nutreco holds a 75% interest.

Previously Nutreco expected an increase in the net result of approximately 15%.

Barring unforeseen circumstances, Nutreco expects that the net profit will be at least EUR 120 million, an increase of more than 50% compared to the 2004 IFRS net result of EUR 77.9 million (EUR 76,9 million according to Dutch GAAP).

The net result of Marine Harvest will be considerably higher than earlier expected. Besides a stronger operational result in Quarter 4 for Marine Harvest, as a result of a number of factors, including higher salmon prices, the increase in net result is mainly influenced by a higher salmon livestock valuation at the year-end balance sheet date. In accordance with IFRS, the fish that are ready for harvest at the balance sheet date are stated at fair value, on the basis of market prices. Marine Harvest had a larger percentage of market size fish at December end giving a large volume impact on the fair value effect in addition to the price impact.

The operating result of Nutreco’s fish farming activities is included for the first four months in the Nutreco operating result of 2005. After this Nutreco’s 75% share in Marine Harvest is being reported as ‘share in result from non-consolidated companies’.

The annual results 2005 will be published before the opening of the stock exchange on Thursday 16 February.